xbrli:pureiso4217:DKK291195112020-01-012020-12-31291195112020-01-012020-12-311291195112020-01-012020-12-311291195112020-01-012020-12-311291195112020-01-012020-12-312291195112020-01-012020-12-313291195112020-01-012020-12-314291195112020-01-012020-12-315291195112020-01-012020-12-316291195112020-01-012020-12-317291195112020-01-012020-12-312291195112020-01-012020-12-31291195112019-01-012019-12-31291195112020-01-012020-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember291195112020-01-012020-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember291195112020-01-012020-12-31fsa:RetainedEarningsMember291195112020-01-012020-12-31fsa:RetainedEarningsMember291195112019-01-012019-12-31fsa:RetainedEarningsMember291195112020-12-31291195112019-12-31291195112020-01-01fsa:ContributedCapitalMember291195112020-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember291195112020-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember291195112020-01-01fsa:ReserveForDevelopmentExpenditureMember291195112020-01-01fsa:RetainedEarningsMember291195112020-12-31fsa:ContributedCapitalMember291195112020-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember291195112020-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember291195112020-12-31fsa:ReserveForDevelopmentExpenditureMember291195112020-12-31fsa:RetainedEarningsMember291195112020-01-01291195112020-01-012020-12-31fsa:ContributedCapitalMember291195112020-01-012020-12-31fsa:ReserveForDevelopmentExpenditureMember291195112020-12-31fsa:AllTypesOfRelationsNumberOfEmployeesMember291195112019-12-31fsa:AllTypesOfRelationsNumberOfEmployeesMemberRegnskabsklasse C, stor virksomhed339635562019-01-012019-12-31Aarhus C80002City Tower, VærkmestergadeDeloitte Statsautoriseret RevisionspartnerselskabHedenstedHornsyld8783Revisionspåtegning2020-12-312020-01-01<br /><br />3BjørnkærvejTriax A/S29119511339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Triax A/S for the financial year 01.01.2020 - 31.12.2020.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2020 and of the results of its operations for the financial year 01.01.2020 - 31.12.2020.We believe that the management commentary contains a fair review of the affairs and conditions referred to
therein.We recommend the annual report for adoption at the Annual General Meeting.Hornsyld2021-05-31Peter Lyhne UhrenholtDirectorRamon Sotomayor JaureguiMorten JørgensenJavier Francisco Bicarregui GarayNiels-Christian WorningThomas LindsmanNiels Christian NielsenJørgen Schrøder JensenChairmanTo the shareholders of Triax A/SWe have audited the financial statements of Triax A/S for the financial year 01.01.2020 -
31.12.2020, which comprise the income statement, balance sheet, statement of changes in equity and
notes, including a
summary of significant accounting policies. The financial statements are prepared in
accordance with the
Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2020 and of the results of its operations for the financial year 01.01.2020 - 31.12.2020 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the financial statements" section of this auditor’s
report. We are independent of the Entity in accordance with the International Ethics Standards Board of
Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable
in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going
concern basis of accounting in preparing the financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures
in the notes, and whether the financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required under the Danish Financial Statements Act.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the financial statements and has been prepared in accordance with the requirements of the Danish Financial
Statements Act. We did not identify any material misstatement of the management commentary.Aarhus2021-05-31Henrik VedelTommy Schormand Johansenmne10052mne44080State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2020
DKK'0002019
DKK'0002018
DKK'0002017
DKK'0002016
DKK'000Key figuresRevenue127,471143,880167,766178,776210,263Gross profit/loss24,38430,11446,00641,49045,799Operating profit/loss(11,125)(10,979)2,290(9,273)847Net financials(3,185)(2,263)(1,882)(2,441)(1,134)Profit/loss for the year(16,180)(46,024)(7,548)(13,206)31,139Total assets102,893114,242151,580173,515200,137Investments in property,
plant and equipment5301,1705334567,963Equity(5,045)(1,606)45,55453,13791,706Average number of employees105121132140136RatiosGross margin (%)19.1320.9327.4223.2121.78EBIT margin (%)(8.73)(7.63)1.36(5.19)0.40Net margin (%)(12.69)(31.99)(4.50)(7.39)14.81Equity ratio (%)(4.90)(1.41)30.0530.6245.82Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Gross margin (%)
:Gross profit/loss * 100
RevenueEBIT margin (%):Operating profit/loss
* 100
RevenueNet margin (%)
:Profit/loss for the year * 100
RevenueEquity ratio (%)
:Equity * 100
Total assetsPrimary activitiesTRIAX is an international supplier of reliable and innovative solutions for the reception and distribution of video, audio and data signals. The Company’s products and solutions are used by broadcasters, cable operators, local networks and in private homes, among others – all centered around ‘connectivity’.
In the following, the name ‘TRIAX’ is used as a general name covering all TRIAX units and therefore applies to the Group, TRIAX Holding A/S, TRIAX A/S and all underlying subsidiaries.
Development in activities and financesThe Covid-19 crisis had a negative impact on the financial performance in 2020. A number of the TRIAX products, solutions and services are sold to the hospitality segment, which has been under lockdown during the crisis. Consequently, TRIAX has experienced reduced interest in investing in new technologies from this segment, why the growth ambitions for 2020 were not achieved.
Despite the difficult market conditions TRIAX managed to grow sales by 5% year-on-year in the second half of 2020, which is considered satisfactory. TRIAX successfully identified and penetrated new market verticals, launched several new products as well as reinforced focus on the existing product portfolio, which fueled the sales growth.
Revenue was DKK 127.5m in 2020 (2019: DKK 143.9m), where the decline occurred in first half of 2020. EBITDA before non-recurring costs increased to DKK 2.8m (2019: DKK -10m), and TRIAX posted a loss for the year of DKK 18.4m (2019: a loss of DKK 46m). The overall result is considered unsatisfactory, but management is pleased to note, that TRIAX managed to improve earnings in the second half 2020 on a year-on-year basis and also significantly improved the operational result.
In order to mitigate the negative impact from the Covid-19 crisis TRIAX has utilised governmental support programs for fiscal support and sent staff on government supported furlough.
In line with the defined strategy of being a strong technology provider of new unique products to selected major customer and market segments, TRIAX continued its investments in core technology platforms in 2020. As a result, a series of innovations and new products were launched during 2020 and more are planned to be launched in 2021. The new TRIAX Compact Head End was launched in Q4 2020, and was well received in the market. With this launch the Group now have a headend that will fulfill the requirements of every installation in size and budget.
In December 2020 TRIAX announced the 50/50 merger agreement with the Spanish company Ikusi Multimedia. The merged Group will enhance the market footprint and regional presence along with a strengthened product portfolio. The merger has come into effect end of Q1 2021.
Employees
The Company had 106 employees at the end of the financial year.
The development in staff is illustrated below:
OutlookBased on the positive trend seen in the second half of 2020 and the strong pipeline of internally developed new products, TRIAX initially expects an increase in revenue and earnings in 2021. The merger with Ikusi Multimedia will have a positive impact on revenues in 2021 for the Group, but due to integration expenses, no material impact on earnings in 2021 is forecasted.
TRIAX has entered into a new long term committed financing agreement, which together with the merger with Ikusi Multimedia, will provide a solid platform to continue the ongoing transformation to a stronger market position.
Particular risksTRIAX’s business is not found to be exposed to any particular risks other than those to which the business is usually subject to. Having said that, 2021 will also be negatively affected by Covid-19 virus in most of its markets.
Management assesses on a regular basis whether the TRIAX Group has a sufficient capital structure, and Management assesses on a continuing basis whether the Company’s capital structure is consistent with the Company’s and its stakeholders’ interests. The general objective is to ensure a capital structure that supports long-term and profitable growth.
At 31 December 2020, the Group’s net interest-bearing bank debt totals DKK 108m (2019: 94m). It is Management’s assessment that the with new bank agreement as well as the combined strength from the merger, the present capital structure provides the necessary flexibility to meet the Company’s future strategy.
Research and development activitiesTRIAX continued its focus on research and development activities in 2020, mainly driven internally by the R&D
department. This continue to strengthen and expand the product and solutions offering and TRIAX’ ability to
support customers with highly competitive products and solutions.
The cost is capitalized in the balance sheet in order to align the cost and income from the new products and
technologies. Statutory report on corporate social responsibilityAs a natural continuation of its standards of value, TRIAX assumes responsibility for its products and production, also when it comes to environmental issues and social conditions. Business model
TRIAX produces and sources various products related to the reception and distribution of signals for TV, radio and data. The products are sold through subsidiaries, directly to Cable TV (CATV) operators and as well as through various sales channels such as wholesellers. TRIAX also devel-ops products and solutions to the hospitality segment such as hotels and elderly homes. These products and solution are sold through partners.
TRIAX is represented by subsidiaries in Denmark, Sweden, Germany, France, Spain, Austria, Hungary, UK and China. TRIAX also has a branch in Dubai.
Environmental and climate change issues
TRIAX impacts environment with production plants in Denmark and the UK, transportation of products and employees and indirectly also with the production outsourced by TRIAX as well as the use and disposal of products by customers and end-users.
As TRIAX is aware of the potential risk of impacting the environment from our activities, we wish to be an environmentally conscious and responsible enterprise and cooperative partner. To achieve this, TRIAX will contribute to a sustainable development by reducing the volume of waste and energy consumption and by continuously aiming to prevent pollution and improve the environmental conditions within the entire enterprise.
TRIAX A/S is ISO 14001 certified since May 2006, and this was renewed without comments in 2020.
Social and employee aspects
The employees are TRIAX’ most important resource, and TRIAX is very conscious of the importance of attracting, retaining and developing the right talents and competences in order to remain competitive. TRIAX strives to have an international group of employees from various cultures and with different backgrounds. TRIAX has a policy for physical and mental health on the work place, and have clear guidelines for how to handle incidents. The policy is given to all new employees and is easily available for all staff at TRIAX’s intranet.
The staff association is active and offers social activities for employees throughout the year.
The employee satisfaction and safety is also measured through the KPI’s for work accidents and sick absence. In 2020 the goals and achieved results were:
Two work accidents in the UK is still two too many, but compared with 13 accidents in 2016, TRIAX has progressed in identifying and reducing the risk.
Social responsibility for society
TRIAX supports the UN Global Compact initiative and its ten principles within human rights, labour, environment and anti-corruption. For TRIAX the main risks related to these are connected to sourcing and selling in high risk countries regarding labour, environment and anti-corruption. To mitigate these risiks, it is ensured that these principles are observed in TRIAX’ production areas in Denmark and the UK as well as at the suppliers worldwide. The codex is an integrated part of the day-to-day business dialog with customers, suppliers and colleagues. TRIAX has seen no violations of the codex during 2020.
We also refer to the Groups CSR-policy for detailed descriptions concerning Human Rights and anti-corruption https://www.triax.com/images/Certificates/CSRpolicy-2017FE_v2.pdf
For additional information, please see: www.triax.com/policies-and-certificationsStatutory report on the underrepresented genderAt TRIAX, women are underrepresented on the Board of Directors and the Executive Board. In TRIAX, qualifications always have the highest priority. It is, however, TRIAX’ aim to have an equal representation of men and women on the Board of Directors and the Executive Board soonest possible, yet respecting the pace of which there is an actual need to make changes to the Board of Directors or Executive Board.
The gender composition has not changed and the Board of Directors and the Executive Board continues to consist of men only.
TRIAX’ goal is to have a minimum share of women on the board of Directors as well as the Executive Board of 40% by 2024 at the latest.
It continues to remain the objective to have an equal representation of men and women and TRIAX strives to find suitable female candidates when recruiting for other management positions. In the hiring process, it is ensured that both genders are equally considered for these positions through dialog between management, HR and the hiring manager. At the end of 2020, 30% of international general management positions within TRIAX are filled by women.
Statutory report on corporate governanceTRIAX’ Board of Directors and Executive Board always strive to ensure that the Group’s management structure and control system remain appropriate and function satisfactorily. Management continuously assesses whether this is the case.
The planning of the Board of Directors and the Executive Board’s tasks is based on the Danish Companies Act, the Danish Financial Statements Act, the Company’s Articles of Association as well as normal practice for enterprises of the same size and of the same international scope as the TRIAX Group. Moreover, in its capacity of an enterprise owned by a private equity fund, the Company acts upon the DVCA guidelines for responsible ownership and corporate governance. On this basis, a number of internal procedures are continuously being developed and maintained, which ensures an active and cost effective management of the Group.
The report on the TRIAX Group's recommendations and policies is published on the Group’s website www.triax.com/policies-and-certifications
Recommendations for active ownership and corporate governance for private equity funds
In January 2019, the Danish Venture Capital and Private Equity Association (‘DVCA’) published updated guidelines for responsible ownership and corporate governance for equity funds and their controlled enterprises.
The guidelines include a description of a number of circumstances in the management commentary, including corporate governance and social responsibility.
As a company partly owned by a private equity fund, the TRIAX Group must either act upon these recommendations or explain why the recommendations are not acted upon in part or fully. For further information on DVCA, see www.dvca.dk and www.dvca.dk/kapitalfonde/
Audit Committee
Due to the Company’s size, the current dialogue as well as high meeting frequency of the chairmanship, it is not considered necessary to set up an audit committee.
Internal audit
The TRIAX Group has not found it relevant and appropriate to set up an internal audit.
Risk management
The Board of Directors continuously – and at least once a year – assesses the TRIAX Group’s total risks and the individual risk factors involved in the Company’s activities. The Board of Directors adopts guidelines for the key risk areas, follows the development and prepares action plans for reduction and management of the individual risk factors, including financial and business risks, insurance and environmental issues as well as observance of the competition legislation.
Realisation of strategy and targets
It is TRIAX’ opinion that effective risk management and an effective internal control system contribute to reducing strategic risks and business risks, to ensuring observance of current rules and regulations and to ensuring the quality of the basis for Management’s decisions and the financial reporting. The Company’s strategic choice results in natural risks. It is important that the risks are identified and communicated and that the risks are handled appropriately.
TRIAX also believes that effective risk management and internal controls are a condition for the top management body and the Executive Board being able to perform the tasks assigned to these bodies. It is therefore important that the top management body ensures that effective risk management and effective internal controls are present.
Financial reporting
The Board of Directors and the Executive Board have the overall responsibility for the Group’s risk management and internal controls in connection with the financial reporting process.
The organisational structure and the internal guidelines constitute the control environment together with laws and other rules applicable for the Group. Management regularly evaluates the Group’s organisational structure and staffing and lays down and approves overall policies, procedures and controls as part of the financial reporting process.
In relation to the financial reporting, Management pays special attention to the internal controls in the enterprise’s business management system supporting that the financial reporting is con-ducted satisfactorily.
The TRIAX Group has established a formal reporting process, which comprises monthly reporting on the individual countries and individual products and which includes budget follow-up, assessment of performance and observance of adopted targets etc.
Business risks
When updating and approving the strategy plan each year, Management also evaluates the business risks. As part of the risk assessment, Management considers, as necessary, the finance, hedging and insurance policies for the Group which have been approved by the Board of Directors.
The Group’s primary business risks relate to the Company’s ability to maintain a leading position as a supplier of advanced high-quality solutions at competitive prices compared to the general development in the European demand for the enterprise’s products and solutions. TRIAX markets a wide portfolio of products and solutions to a large number of customers in many different markets. Thus, TRIAX has a high risk diversification in its revenue.
TRIAX’ risk management, including internal controls relating to the financial reporting process, is designed with a view to minimising the risk of errors and omissions.
The Executive Board is responsible for the risks always being identified, assessed and treated in order to reduce the financial implications and/or the probability that the risks are realised.
Board work
The Board of Directors handles the overall management of the Group, including employment of the Executive Board, establishment of guidelines for and execution of control of the Executive Board's work, ensuring a proper organisation of the Group’s business, determination of the philosophy and strategy, as well as an assessment of the propriety of the Group’s capital re-sources.
The Board of Directors of the TRIAX Group convenes according to a fixed meeting schedule, typically approx. 5 times per year. Normally, the Board of Directors and all members of the Executive Board participate in all meetings.
The Board of Directors consists of 4 members elected by the general meeting. In the period between the ordinary board meetings, the Board of Directors is continuously briefed in writing on the development in the Company’s and the Group’s results and financial position, and the Group’s chairmanship meets with the Group’s Executive Board when necessary. Extraordinary meetings will be convened when necessary.
The Board of Directors can appoint committees for special tasks, but has so far not found any reason to establish such committees.
The Board of Directors of the TRIAX Group ensures that the Executive Board observes all adopted targets, strategies and processes. Once a month, the Executive Board submits a report on the Group's financial position, development in profitability and capital resources. Further-more, the chairmanship meets regularly with the Executive Board and the participants consist-ing of the Chairman of the Board of Directors, a member of the Board of Directors and the CEO. Moreover, a strategy day is held annually when the Group’s vision, targets and strategy are laid down.
Remuneration of the Board of Directors and the Executive Board
To attract and retain the Group’s managerial competences, remuneration of the Board of Direc-tors, Executive Board members and executive staff is determined in consideration of tasks, value creation and conditions in comparable enterprises.
Remuneration of the Board of Directors and the Executive Board has been detailed in a note to the annual report.
Dividend policy
Payment of dividend must take place in consideration of necessary consolidation of equity as basis for the Group’s continued development and in consideration of the existing agreements with financing sources.
The Board of Directors recommends to the Annual General Meeting that no dividends are paid for the financial year 2020.
Ownership and capital structure
TRIAX Holding A/S is ultimately owned by the private equity fund Polaris Private Equity IV K/S with 92,96% represented by member of the Board of Directors Niels-Christian Worning and Jan Johan Kühl. The Board of Directors, Management of TRIAX and former employees hold the remaining 7,04% of the shares. The other members of the Board of Directors are independent but appointed by the owners. The Board of Directors of TRIAX Holding A/S is the same as the Board of Directors of TRIAX A/S, which, however, also has three members elected by the employees.
Whistleblower
The board has discussed the need for establishing a whistleblower function but has not found this necessary for the time being. Due to new legal requirements the Group intends to have a whistleblower function in place by end 2021. Events after the balance sheet dateBy end of March 2021 all relevant approvals have been obtained, and the TRIAX A/S Group is now part of the Trik Holding XXI, S.L.U Group, in which Triax Holding A/S owns 50% of the shares.
No other events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.
Group chart
All subsidiaries are wholly-owned. By end of March 2021 Triax A/S are owned by Trik Holding XXI, S.L.U.
Board members’ directorships and Executive positions
Board of Directors is made up of chairman Ramon Sotomayor Jauregui, Morten Jørgensen,
Niels-Christian Worning, Javier Francisco Bicarregui Garay and director Peter Lyhne Uhrenholt.
12747100014388000010308700011376600024384000301140002648400024602000128270001776000038020001269000-11125000-10979000-4070000-2763900010300054600032880002809000-18380000-40881000-22000005143000-16180000-4602400000-16180000-16180000-460240002986500014095000907000223100077360001843600038508000347620003190002555000197100023850004660001140002220005260002978000558000041000009324000410000093240004558600049666000126860001078000023000027580001594000021345000288560003488300014061000159450005271000603900028350004069000220000001464000183000025831000278830002620000181000057307000645760001028930001142420003000000030000000-146200002932800025374000-62911000-56980000-5045000-1606000300000000025374000-5698000030000000-1462000029328000-62911000-1606000795000795000795000795000115000001150000011500000115000003978400049533000174980002503000021691000148050001667000014185000956430001035530001071430001150530001028930001142420000-146200000-14620001389500013895000030800003080000-3080003954000-364600001 Events after the balance sheet dateBy end of March 2021 all relevant approvals have been obtained, and the TRIAX A/S Group is now part of the Trik
Holding XXI, S.L.U Group, in which Triax Holding A/S (parent) owns 50% of the shares. 2 Revenue2020
DKK'0002019
DKK'000European countries95,150112,734Middle East27,43229,724Other countries4,8891,422Total revenue by geographical market127,471143,8803 Staff costs2020
DKK'0002019
DKK'000Wages and salaries41,33057,447Pension costs7,2074,554Other social security costs6351,00149,17263,002Number of employees at balance sheet date106110Average number of full-time employees105121Remuneration of management
2020
DKK'000Remuneration
of
management2019
DKK'000Total amount for management categories762701762701106110105121Remuneration of management
2020
DKK'000Remuneration
of
management2019
DKK'000Total amount for management categories7627017627017620007010004 Other financial income2020
DKK'0002019
DKK'000Financial income from group enterprises3746Other interest income665001035465 Other financial expenses2020
DKK'0002019
DKK'000Other interest expenses2,2782,237Exchange rate adjustments1,0105723,2882,809<br />2020
DKK'0002019
DKK'000Other interest expenses2,2782,237Exchange rate adjustments1,0105723,2882,8096 Tax on profit/loss for the year2020
DKK'0002019
DKK'000Current tax(2,200)0Change in deferred tax05,143(2,200)5,1437 Proposed distribution of profit and loss2020
DKK'0002019
DKK'000Retained earnings (16,180)(46,024) (16,180)(46,024)8 Intangible assetsCompleted development projects
DKK'000Acquired intangible assets
DKK'000Development projects in progress
DKK'000Cost beginning of year17,7714,77018,436Transfers20,97735(21,012)Additions0010,312Cost end of year38,7484,8057,736Amortisation and impairment losses beginning of year(3,676)(2,539)0Amortisation for the year(5,207)(1,359)0Amortisation and impairment losses end of year(8,883)(3,898)0Carrying amount end of year29,8659077,7369 Development projectsClearly defined and identified development projects are recognised in the balance sheet, and only when there is a direct expectation to market and sell the development or otherwise generate a financial benefit that exceeds the asset capitalised. Other development costs are recognised as expenses in the income statement when they are incurred.10 Property, plant and equipmentPlant and machinery
DKK'000Other fixtures and fittings, tools and equipment
DKK'000Leasehold improvements
DKK'000Property, plant and equipment in progress
DKK'000Cost beginning of year46,34744,691165526Transfers10934588(542)Additions00292238Disposals(23,587)(965)00Cost end of year22,86944,071545222Depreciation and impairment losses beginning of year(43,792)(42,306)(51)0Depreciation for the year(293)(759)(28)0Reversal regarding disposals21,53596500Depreciation and impairment losses end of year(22,550)(42,100)(79)0Carrying amount end of year3191,97146622211 Financial assetsInvestments in group enterprises
DKK'000Cost beginning of year102,973Cost end of year102,973Revaluations beginning of year(93,649)Exchange rate adjustments(1,462)Adjustments on equity308Share of profit/loss for the year(4,070)Revaluations end of year(98,873)Carrying amount end of year4,100<br />Investments in group enterprises
DKK'000Cost beginning of year102,973Cost end of year102,973Revaluations beginning of year(93,649)Exchange rate adjustments(1,462)Adjustments on equity308Share of profit/loss for the year(4,070)Revaluations end of year(98,873)Carrying amount end of year4,10012 PrepaymentsThe prepayments include deposit and prepaid costs.13 Other provisionsOther provisions include costs to guarantee of DKK 0.8 million.14 Unrecognised rental and lease commitments2020
DKK'0002019
DKK'000Liabilities under rental or lease agreements until maturity in total10,00515,96715 Assets charged and collateralBank loans are secured by way of floating charge registered to the mortgagor of nominal DKK 40,000k.
The Entity has guaranteed the Group’s bank loans. The maximum limit of the guarantee is DKK 125,040k.
As security for bank loans, unlisted shares of six subsidiaries have been mortgaged.
The Entity participates in a Danish joint taxation arrangement with Triax Holding A/S serving as the admin-istration company and, therefore, the Entity is jointly and severally lieable with its jointly taxed companies for the total income tax from the financial year 2012 and from 1 July 2012 also for obligations, if any, to withhold tax in interest, royalities and dividends for the jointly taxed companies. The total net liability to SKAT appears from the financial statements of Triax Holding A/S.16 Related parties with controlling interestRelated parties with controlling interest as of balance sheet date:
Triax Holding A/S, Hornsyld, Denmark
Polaris Management A/S, København Ø, Denmark
As of 26/3-2021: No controlling interest.17 Transactions with related partiesTransactions with related parties are only disclosed in the annual report if they are not on arm’s length terms. Transactions between Triax A/S and related parties are on all arm’s lenth terms.This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (large).Consolidated financial statementsReferring to section 112(1) of the Danish Financial Statements Act, no consolidated financial statements have been prepared. The financial statements of Triax A/S and its group enterprises are included in the consolidated financial statements of Triax Holding A/S.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and
other non-monetary assets that have been purchased in foreign currencies are translated using historical
rates.
When recognising foreign subsidiaries and associates that are independent entities, the income statements
are translated at average exchange rates for the months that do not significantly deviate from the rates at
the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange
rate at the balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’
equity at the beginning of the year at the balance sheet date exchange rates and out of the translation of income statements from average rates to the exchange rates at the balance sheet date are classified
directly as equity.Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost and sub-sequently at fair value. Derivative financial instruments are recognised under other receivables or other payables.
Changes in the fair value of derivative financial instruments classified as and complying with the requirements for hedging future transactions are recognised directly in equity. When the hedged transactions are realised, the
accumulated changes are recognised as part of cost of the relevant financial statement items.
RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement
when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised
in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and
sales discounts and is measured at fair value of the consideration fixed.Production costsProduction costs comprise expenses incurred to earn revenue for the financial
year. Production costs comprise direct and indirect costs for raw materials and consumables, wages and
salaries, rent and lease, and amortisation, depreciation and impairment losses relating to intangible
assets and property, plant and equipment included in the production process. In addition, the item includes
ordinary write-down of inventories. Distribution costsDistribution costs comprise costs incurred for sale and distribution of the Entity’s products, including wages and salaries for sales staff, advertising costs, travelling and entertainment expenses, etc as well as amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment attached to the distribution process.Administrative expensesAdministrative costs comprise expenses incurred for the Entity’s administrative functions, including wages and salaries for administrative staff and Management, stationery and office supplies as well as amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment used for administration of the Entity.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual
enterprises’ profit/loss after full elimination of intra-group profits or losses.
Other financial incomeOther financial income comprises interest income, including interest income on receivables from group en-terprises, net capital or exchange gains on securities, payables and transactions in foreign currencies, amor-tisation of financial assets as well as tax relief under the Danish Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group en-terprises and transactions in foreign currencies, amortisation of financial liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the portion attributable to entries directly in equity.Intellectual property rights etcIntellectual property rights etc comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity under Reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets and depreciation of property, plant and equipment used in the development process are recognised
in cost based on time spent on each project.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. If the useful life cannot
be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property
rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation
periods used are 3-10 years. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are
amortised on a straight-line basis over their remaining duration, and licences are amortised over the term of the agreement.
Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentCost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the time when it is ready to be put into operation.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line de-preciation is made on the basis of the following estimated useful lives of the assets:Plant and machinery5-10 yearsOther fixtures and fittings, tools and equipment3-10 yearsLeasehold improvements8-10 yearsEstimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured according to the equity method. This means that investments are measured at the pro rata share of the enterprises’ equity value plus unamortised good-will and plus or minus unrealised intra-group profits or losses.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises are written down to net realisable value based on a specific assessment. If the Parent has a legal or con-structive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation will involve a loss, a provision is recognised that is measured at present value of the costs necessary to settle the obligations at the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to Reserve for net revaluation according to the equity method under equity.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value.
Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists of costs of raw materials, consumables, direct labour costs and indirect production costs.
Indirect production costs comprise indirect materials and labour costs, costs of maintenance, depreciation and impairment losses relating to machinery, factory buildings and equipment used in the manufacturing process as well as costs of factory administration and management. Finance costs are not included in cost.
The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs incurred to execute sale.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and doubtful debts.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises cash in hand and bank deposits.Additional payments from and repayments to members
Prepayments received from customers comprise amounts received from customers prior to delivery of the goods agreed or completion of the service agreedOther provisionsOther provisions comprise anticipated costs of non-recourse guarantee commitments, returns, loss on con-tract work in progress, decided and published restructuring, etc.
Other provisions are recognised and measured as the best estimate of the expenses required to settle the liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the balance sheet date are measured at their discounted value.
Non-recourse guarantee commitments comprise commitments to remedy defects and deficiencies within the guarantee period.Operating leasesLease payments on operating leases are recognised on a straight-line basis in the income statement over
the term of the lease.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Cash flow statementReferring to S. 86 (4) of The Danish Financial Statements Act, no cash flow statement has been prepared as the higher-level parent Triax Holding A/S prepares a consolidated cash flow statement in which the Company’s cash flow is included.2021-05-31Ramon Sotomayor Jauregui